HKR 040/24 W91
CONFIDENTIAL
M. Elans 71/6
16. Ente opa. GATT file in "16
ли
has now formalised this long-existing practise by issuing an
instrument of entrustment for this purpose; the continuance of such
a practice (so long as it lasts) constitutes autonomy for the purposes of the GATT and CCc.
AL
11. There can be no guarantee that such a course would satisfy the
relevant authorities of the GATT, and it would be possible for arguments to be adduced against it on the basis of the lack of constitutional autonomy for Hong Kong. However preliminary
soundings of the Secretariat have not so far revealed any doubts
about Hong Kong's ability to act as a separate Contracting Party. The course proposed avoids more serious constitutional issues and it should be explored further with the Law Officers.
5 June 1985
A C Galsworthy Hong Kong Department
So
1. Hong Kong has in practice had autonomy in the conduct of its external commercial relations since at least the 1960s.
The GATT far as I am aware, nobody has questioned this. Secretariat seem to accept it (paragraph 11). There is, however some risk that the basis of this autonomy might be challenged when we seek for Hong Kong an autonomous status under the GATT. I have some hesitation about making any "constitutional" move over Hong Kong unless it is absolutely necessary. for making the situation clear-cut, in case we are challenged, are good and I accept therefore that it would be sensible to go ahead with an entrustment as argued in the submission.
2.
But the arguments
We need to consider the Chinese angle. There is always a risk of Chinese suspicion at anything we do in Hong Kong, particularly if it seems to them to be pushing the territory in the direction of greater independence. In this particular case
CONFIDENTIAL
/the Agreement